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SEC Division of Enforcement Director Gurbir Grewal asserted that the "decline in trust in our financial markets" is in part a result of "repeated lapses by large businesses, gatekeepers, and other market participants." He said that regulators do not hold them sufficiently accountable.

Commentary by Steven Lofchie

An investment advisory firm, its two owners and a former chief compliance officer ("CCO") have agreed to settle charges that the firm violated Advisers Act Rule 206(4)-2 (the "custody rule") by failing to produce audited financial statements after being reprimanded for a violation several years before, and for failing to take remedial measures. The firm and its co-founders agreed to pay a $1 million penalty and to a year's suspension from raising money from new or existing investors. Its CCO agreed to pay a $60,000 penalty and to a year's suspension from acting as a CCO or appearing or

The SEC announced fraud charges against two Tampa-area investment advisers accused of failing to inform clients truthfully about compensation received from offshore funds. The advisers recommended the funds as safe investments despite substantial risks and red flags. The SEC's Enforcement Division alleged that Gregory J. Adams and Larry C. Grossman solicited and directed the clients of their investment firm, Sovereign International Asset Management, to invest almost exclusively in funds controlled by an asset manager named Nikolai Battoo, whom the SEC has previously charged in a separate